Employment and unemployment in the CR as measured by the LFS - 4. quarter of 2008

Compared to Q4 2007, total employment grew by 66.2 thousand in Q4 2008. However, the year-on-year increase in the number of one (main) job holders was lower than in the previous quarters. The number of unemployed persons according to ILO methodology was down by 22.1 thousand year-on-year, the number of the long-term unemployed fell by 15.4 thousand. The general unemployment rate in the age group 15-64 decreased by 0.5 percentage points year-on-year to 4.4% but it grew by 0.1 percentage points quarter-on-quarter (SA).

Employment

The preliminary results for Q4 2008 show the growth of total employment; the seasonally adjusted (SA) average number of employed persons increased by 18.4 thousand (+0.4%) quarter-on-quarter.

The number of one (main) job holders reached 5 033.4 thousand on average, i.e. by 66.2 thousand more (+1.3%) year-on-year. An overwhelming majority of them worked full time, the percentage of part-time jobs (5.0% in the civil sector) is among the lowest in Europe. Like in the previous quarters, the highest relative employment increases were registered, besides the Středočeský Region (+3.4%) and the Hl. m. Praha Region (+2.9%), in the regions with the long-term high unemployment rates, namely in the Ústecký (+3.2%) and Moravskoslezský (+2.8%) Regions.

The number of employees increased by 52.8 thousand year-on-year to 4 208.0 thousand and their share in total employment was 83.6%. The number of members of producer cooperatives decreased by 0.8 thousand to 12.3 thousand. The self-employed in main job including family workers recorded a year-on-year rise of 14.3 thousand to 812.8 thousand and their share in total employment remained at 16.1%. The number of the self-employed with employees grew by 13.1 thousand to 186.1 thousand and the number of family workers rose by 6.8 thousand to 35.2 thousand, but the number of the self-employed without employees dropped by 5.6 thousand to 591.5 thousand. The Czech Republic belongs to the EU countries with a high percentage of the self-employed.

Unlike in the previous quarters, the growth of employment in the secondary sector (industry incl. construction) slowed down markedly – the year-on-year increase of persons in employment was a mere 12.3 thousand. Persons employed in manufacturing fell by 9.0 thousand. The growth of total employment in Q4 2008 was affected by an increase of 63.4 thousand in the tertiary sector (all service activities incl. transport). The decrease in the primary sector (agriculture, incl. fishing, hunting and forestry) continued (-9.2 thousand).

The employment rate (percentage of one (main) job holders in the age group 15-64) reached 66.8%, which was by 0.3 percentage points up year-on-year. The male and female employment rates grew by 0.3 percentage points to 75.8% and by 0.3 points alike to 57.7% respectively.
The number of one (main) job holders rose and so did the number of second jobs (+8.0 thousand year-on-year to 91.3 thousand). Unlike main jobs, second job holders are mostly the self-employed without employees (52.0 thousand).


Unemployment

The seasonally adjusted average number of unemployed persons according to the International Labour Organisation (ILO) ¹⁾ methodology increased by 4.9 thousand quarter-on-quarter. Q4 2008 thus saw the first quarter-on-quarter unemployment increase (SA) in the Czech Republic since 2005.

The number of the unemployed reached 230.8 thousand (of which 128.9 thousand women), which was by 22.1 thousand fewer year-on-year (-8.7%, as against -15.8% in Q3 2008). Female and male unemployment dropped by 14.7 thousand and 7.4 thousand respectively.

The number of persons unemployed for one year and more decreased by 15.4 thousand year-on-year to 107.4 thousand and their percentage kept below half of all the unemployed (46.5%). In comparison to the EU the Czech Republic still belongs to the countries with a high percentage of the long-term unemployed. An extraordinarily high percentage of persons out of work for a long time is observed in the group of unemployed persons with basic education (63.3% of all unemployed persons with basic education); the percentage of the long-term unemployed among unemployed persons with secondary education without maturita examination was 44.8%.

The general unemployment rate according to the ILO definition (in the age group 15-64) reached 4.4%, which is still among the lowest rates in the last decade. Compared to Q4 2007, unemployment rate decreased by 0.5 percentage points. In the long term the general unemployment rate in the Czech Republic is below the EU average and below the euro area average.

The different survey methodology led to a discrepancy between the general unemployment rate (ILO) and the registered unemployment rate (the Ministry of Labour and Social Affairs of the CR). The development trend was the same for both rates because there are no significant differences between LFSS and MLSA unemployment rates in comparison to Q3 2008. The registered unemployment rate (MLSA CR) reached 5.4% in Q4 2008, which was by 0.4 percentage points less year-on-year.

The regional unemployment rates (people aged 15 and over) ranged from 2.0% in the Hl. m. Praha Region to 8.3% in the Ústecký Region.

Low unemploy­ment rate is steadily recorded for university graduates (1.7%) and persons with full secondary education with maturita examination (2.9%). A high unemployment rate persists among persons with basic education (19.2%), and average unemployment rate was recorded in the large group of persons with secondary education without maturita examination including persons with apprenticeship education (4.3%).


Inactivity

The Labour Force Sample Survey also produces data for persons who are not in work, do not actively seek a job and thus do not meet the ILO conditions for being considered as unemployed but they declare their willingness to work. In Q4 2008 they were 178.0 thousand, i.e. by 19.8 thousand fewer year-on-year. A large number of them are aged up to 24 (44.7 thousand), mainly students and apprentices. A relatively high number of inactive people aged 25-34 (37.9 thousand) is due to the fact that women on parental leave or housewives want to have a job. The number of persons interested in employment is high at the age of 50 and over. They were 14.5 thousand in the age group 50-54 and 15.9 thousand in the age group 55-59. In the age group 50-54 they are predominantly disability pension recipients and the same holds for the age group 55-59. There were 30.5 thousand persons interested in job in the age group 60 and over, old age pensioners making up a decisive part.

However, a majority of persons willing to work are not able to take a job immediately. Only 38.7 thousand, i.e. a fifth of the entire group, are available to start work within a fortnight.

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Notes:
Contact: Dalibor Holý, tel.: 274052694, e-mail: dalibor.holy@csu.gov.cz
Data source: CZSO, Labour Force Sample Survey (LFSS) conducted in dwelling households, collective accommodation facilities are not included.
End of data collection / End of preliminary processing: 15 January 2009/ 22 January 2009
Related publications: 3101-08 “Employment and Unemployment in the Czech Republic as Measured by the Labour Force Sample Survey” ( /ep-3-opendocument ) with finalised results of the survey will be published by the end of Q1 2009.
The LFSS results have been grossed up to the total population of the Czech Republic, using preliminary data of population statistics as at 30 September 2008 and prediction of natural increase and migration balance in Q4 2008.

1) The ILO methodology defines the unemployed as persons who were: (a) out of work during the reference week, i.e. neither had a job nor were at work (for one hour or more) in paid employment or self-employment, (b) currently available for work, i.e. available for paid employment or self-employment before the end of two weeks after the reference week, and (c) actively seeking work. This methodology is uniform for all EU member states and produces internationally comparable data. It should be noted that the definition of “the unemployed” by ILO differs from the definition of “job applicants” registered by the public employment offices. See the above-mentioned related CZSO publication for a detailed explanation of differences between the number of the unemployed by ILO and the number of registered job applicants.